Article: https://www.cnbc.com/2026/06/10/investors-are-fleeing-tech-stocks-in-record-numbers.html
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Key points
The AI trade looks like it is finally cooling off.
Investors are dumping Big Tech after a strong jobs report pushed Treasury yields higher. The market is realizing that the Federal Reserve may keep rates higher for longer, and that changes the valuation math for expensive tech stocks.
This does not mean AI is fake or that the market is collapsing.
It looks more like money is rotating out of crowded tech names and into boring value areas like:
* Banks
* Health insurers
* Retailers
These sectors are not exciting, but they can work better when rates stay high and the economy is still holding up.
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My two cents
The bigger risk may be the bullwhip effect in chip stocks.
Big Tech has been panic buying AI chips and custom silicon to secure supply. But if hyperscalers cut AI capex even slightly, the suppliers underneath them can get hit much harder.
Broadcom $AVGO is a good example of how sensitive the market is becoming to this.
Once investors start questioning AI demand, inventory hoarding, or endless capex growth, chip stocks can sell off fast.
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TLDR
AI is probably real, but the AI trade may have gotten too crowded. Higher rates are putting pressure on tech valuations. Money seems to be rotating into boring value sectors.
The biggest risk is that chip suppliers get hit hard if Big Tech slows AI spending even a little.
